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US trade court blocks Trump's Liberation Day tariffs

By AAP Newswire

May 29, 2025

US President Donald Trump imposed tariffs on most of countries at one point, sending markets reeling -AP

A US federal court has blocked President Donald Trump's Liberation Day tariffs from going into effect, ruling that the president overstepped his authority by imposing across-the-board duties on imports from nations that sell more to the United States than they buy.

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The Manhattan-based Court of International Trade said the US Constitution gives the US Congress exclusive powers to regulate commerce with other countries that are not trumped by the president's emergency powers to safeguard the US economy.

The lawsuit, filed by the nonpartisan Liberty Justice Centre on behalf of five small US businesses that import goods from countries targeted by the duties, was the first major legal challenge to Trump's tariffs.

The companies - which range from a New York wine and spirits importer to a Virginia-based maker of educational kits and musical instruments - have said the tariffs will hurt their ability to do business.

The lawsuit is one of seven court challenges to Trump's tariff policies, along with challenges from 13 US states and other groups of small businesses.

The White House did not immediately respond to a message seeking comment.

The Trump administration is expected to appeal.

Tariffs must typically be approved by Congress, but Trump says he has the power to act because America's trade deficits amount to a national emergency.

The US president imposed tariffs on most countries in the world at one point, sending markets reeling.

with AP

By AAP Newswire

Australian Associated Press